Software Engineer Salary in Dresden (2026)
Dresden is Europe's semiconductor capital — and software engineers are at the heart of it. Software engineers in Dresden earn €48,000–€88,000 per year, with a median around €62,000. The city's tech market is powered by Silicon Saxony's 600+ member companies, global chip manufacturers (Infineon, GlobalFoundries, Bosch), and the €10 billion TSMC/ESMC fab under construction. With rent at less than half of Berlin's price, Dresden delivers some of Germany's best purchasing power for tech professionals.
Key Facts
- Dresden software engineers earn €48K–€88K/year with purchasing power rivaling Munich's €90K+
- A €65K Dresden salary delivers the same disposable income as €72K in Berlin
- Rent averages €9.22/m² vs Berlin's €16/m² — nearly half the housing cost
- Infineon, GlobalFoundries, Bosch, and TSMC/ESMC drive semiconductor tech demand
- Silicon Saxony counts 600+ companies and 76,000 microelectronics workers
Salary by Experience Level
- Junior (0–2 years): €48,000–€55,000
- Mid-level (3–5 years): €58,000–€72,000
- Senior (6+ years): €78,000–€88,000
How Dresden Compares
Dresden pays 10–15% less than Berlin in nominal terms, but the cost-of-living difference more than compensates. A mid-level engineer earning €65,000 in Dresden takes home ~€3,850/month after taxes. After rent of €700 (one-bedroom, city center), roughly €3,150 remains. In Berlin, a €72,000 salary leaves only ~€2,800 after €1,400 rent. Dresden's €65,000 delivers the same disposable income as Berlin's €72,000 or Munich's €90,000.
Key Employer Landscape
Dresden's software employers divide into three tiers. Semiconductor giants — Infineon (3,200 employees), GlobalFoundries (3,000+), Bosch Semiconductor (700+), and soon ESMC (TSMC JV) — pay €65,000–€88,000 for mid-to-senior roles with exceptional stability. Enterprise and consulting — SAP, T-Systems MMS, Zeiss, Accenture — offer structured careers at €55,000–€78,000. Startups and deep tech — Wandelbots ($123M raised), Cloud&Heat, Sunfire, DevBoost — provide equity upside at €48,000–€65,000.
Skills That Command Premium
Engineers with semiconductor domain knowledge earn 10–20% above generic software roles. C/C++ and embedded systems expertise is uniquely valued given Dresden's chip manufacturing base. Python dominates data-adjacent roles. Cloud platforms (AWS, Azure) combined with on-premises factory system experience command top-of-range salaries. As TSMC ramps hiring for the ESMC fab, chip design tool and manufacturing execution system skills will see further premium.
Top Hiring Companies
Career Advice
Dresden rewards engineers who combine strong software fundamentals with semiconductor domain knowledge — this combination earns 10–20% above baseline. Target Infineon or GlobalFoundries for top compensation at €78K–€88K with excellent benefits. For product-focused work, Wandelbots and Cloud&Heat offer compelling deep-tech challenges. Build embedded systems or manufacturing IT skills to maximize your value in Dresden's unique market. The ESMC fab ramp-up in 2027 will create a hiring wave — positioning yourself now in the Silicon Saxony ecosystem is strategic.
Software Engineer Insights — Dresden
Software Engineer salaries in Dresden range from €48,000 to €88,000, a 65% spread that reflects significant variation based on experience level, specialization, and company size. The median of €62,000 sits below the midpoint, suggesting more positions cluster toward the entry-to-mid-level end of the range.
Dresden's cost of living index of 66/100 represents moderate living costs. At a median salary of €62,000, software engineer professionals here enjoy solid purchasing power relative to higher-cost tech hubs.
The hiring landscape for software engineer in Dresden is anchored by employers like Infineon, GlobalFoundries, and SAP, along with 2 other notable employers. Larger employers in this market typically offer compensation at the upper end of the range, often supplemented with equity, signing bonuses, and comprehensive benefits.
Demand for software engineer in Dresden centers around expertise in Python, C/C++, Java, plus 2 other core competencies. Candidates with strong proficiency across these areas tend to command offers closer to the €88,000 ceiling, and have natural transition paths into roles like Senior Software Engineer or Backend Developer.
Related Roles in Dresden
Explore salary information for similar positions and compare compensation across different roles.
| Role | Location | Salary Range | Median |
|---|---|---|---|
| Senior Software Engineer | Dresden | €78,000 - €100,000 | €86,000 |
| Senior Data Engineer | Dresden | €78,000 - €102,000 | €85,000 |
| Product Manager | Dresden | €46,000 - €82,000 | €60,000 |
| Data Scientist | Dresden | €47,000 - €85,000 | €62,000 |
| Senior DevOps Engineer | Dresden | €78,000 - €105,000 | €88,000 |
| Senior Data Scientist |
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Frequently Asked Questions
What is the average software engineer salary in Dresden?
Software engineers in Dresden earn €48,000–€88,000 per year, with a median around €62,000. Junior engineers at startups and agencies start at €48,000–€55,000. Mid-level engineers at Infineon, GlobalFoundries, or SAP earn €58,000–€72,000. Senior engineers at semiconductor companies or in specialized roles (embedded systems, chip design software) reach €78,000–€88,000.
How does Dresden compare to Berlin for software engineer salaries?
Dresden pays 10–15% less than Berlin in nominal terms (median €62K vs €72K). However, Dresden rent averages €9.22/m² vs Berlin's €16/m², meaning a one-bedroom costs €550–€800/month vs €1,100–€1,800 in Berlin. After housing, a €65,000 Dresden salary often leaves more disposable income than a €72,000 Berlin salary. Dresden also offers shorter commutes and a thriving semiconductor ecosystem.
Which companies hire the most software engineers in Dresden?
Major employers include Infineon (3,200 employees), GlobalFoundries (3,000+), Bosch Semiconductor (700+), SAP, T-Systems MMS (headquartered in Dresden), and Zeiss SMT. ESMC (TSMC joint venture with Bosch, Infineon, NXP) will add ~2,000 direct jobs by 2028. Deep-tech startups include Wandelbots ($123M raised), Cloud&Heat, Sunfire, and spin-offs from TU Dresden.
Do I need to speak German for tech jobs in Dresden?
German skills are more important in Dresden than in Berlin. Engineering teams at multinational employers (Infineon, GlobalFoundries, SAP) often operate in English, but daily life in Dresden is predominantly German-speaking. B1–B2 German significantly expands your options and is recommended for long-term career growth. The EU Blue Card works for roles above ~€47,000, which most mid-level Dresden tech roles clear.
What is the cost of living for software engineers in Dresden?
Dresden is one of Germany's most affordable major cities. A one-bedroom apartment in the city center costs €550–€800/month (€9.22/m²). A software engineer earning the median €62,000 takes home ~€3,700/month after taxes. After rent of ~€700, roughly €3,000 remains — more disposable income than most Berlin engineers earning €10K more. Monthly transport pass costs just €55.
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